Potential Logan Square Rental Tower Could Net Longtime Owners $30M
By Stephen Gossett in News on Nov 21, 2016 9:16PM
Rendering of residential tower proposal
The longtime owners of three buildings along a lucrative stretch of the heavily-trafficked Milwaukee corridor in Logan Square have announced intentions to sell the property. That means another a major new development is likely on the way—one that reflects the ginormous figures that have become "market rate" in the (it’s probably safe to say) fully-gentrified neighborhood.
According to Crain's, owners of three properties along the 2700 block of North Milwaukee Avenue expect bids in excess of $30 million (!) for the three properties, which currently house Parts & Labor, Harding Tavern, Logan Square Fitness and others.
Still, the most remunerative aspect of any potential sale is the parking lot around which the properties stand. Keely Polczynski, of CBRE, the listing’s broker, told Crain’s the lot “is really well situated for a residential tower, especially with the city's emphasis on transit-oriented developments,” A three-level apartment building at 2657 N. Spaulding Ave. would likely be torn down if a residential tower were to sprout, Crain's reported.
TODs have been the focus of stern criticism from affordable-housing advocacy groups in Logan Square. Most recently dozens of protesters impeded construction at an in-progress TOD at North Campbell and West Armitage avenues. While developers argue that increased housing density relieves market rates, TODs often favor high-priced luxury units with even the designated 10 percent allotment of affordable housing too steep in cost, critics charge.
Whatever the case, we won’t be surprised if the building do indeed net tens of millions for a sale. Lets just hope at least neighborhood staple Café Con Leche—which has somehow hung around on that block as grocery-store staples and beloved DIY spaces have vanished around it in the name of progress—can weather the development storm.